Slew of incentives likely for IT and electronics firms

Information technology companies and Electronics System Design and Manufacturing (ESDM) units in Telangana are set to receive a slew of incentives, including power tariff subsidy, exemption of registration fee and stamp duty apart from assured 24x7 power supply soon.Koride Mahesh | TNN | April 04, 2016, 12:58 IST

HYDERABAD: Information technology companies and Electronics System Design and Manufacturing (ESDM) units in Telangana are set to receive a slew of incentives, including power tariff subsidy, exemption of registration fee and stamp duty apart from assured 24x7 power supply soon.

These are some of the measures being incorporated in the IT policy-2016 of the Telangana government expected to be announced on April 4 in the presence of Infosys chairman NR Narayana Murthy. The state government has already announced industrial policy TSiPASS a few months ago to attract investments to the state.

Apart from encouraging companies, established players and startups, the government wants Information Technology Enabled Services (ITeS) companies to set up their units in tier-II cities such as Warangal, Karimnagar and Nizamabad.“Our intention is to double the current Rs 682 billion IT exports and also double the current four lakh employment in next five years.Another goal is to set up three IT hubs in tier-II cities in the next five years,“ a senior official of Telangana IT department told TOI.

For taking IT to rural areas, it has been decided set up Rural Technology Centres (RTCs) in mandal headquarters or major grampanchayats with a population of at least 50,000 and the location of the centre should be at a distance of 50 km from the nearest city.“At least one RTC will be set up in each district and provide employment to a minimum of 2,500 people. The Telangana Academy of Skills and Knowledge (TASK) will train 10,000 rural youth for RTCs,“ officials said.

The government proposed reimbursement of panchayat taxes for first three years of operation for first five IT companies and they will be permitted to avail renewable energy under open access system for a nominal cost to Discoms. Apart from this, 50% investment subsidy on fixed capital invest ment with a maximum limit of Rs 40 lakh per unit will be offered to first three companies. Thereafter, subsidy will be fixed at 10% with a maximum Rs 8 lakh per unit. The government would also offer 25% of reimbursement on internet and telephone charges for the first three years of ope rations. With regard to ESDM, the government assured 24x7 power supply to the units, set up at Mega Electronics Hub. It is proposed to give infrastructure facilities including roads, transportation and water supply.

Officials said the focus would be on medical electronics, LED, semi-conductors, display, aviation and automotive electronics.“The mobile manufacturing units will get land at cost and the power will be given at a 25% subsidy for three years or up to a total of Rs 30 lakh whichever is earlier. The industrialists will get 100% stamp duty subsidy and also reimbursement of VAT for first five years without any investment limit. The VAT rate will also be five per cent,“ another official of the IT department said.

In the digital technology, each one person in every household in Telangana should become digitally literate and also every household should be connected with broadband and wifi network in all major towns and cities.

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